Our loan is with PNC/National City as the servicer but ETrade as the investor. HELOC 2nd (non purchase money recourse loan in California) with a balance of $350K.
We are having a hell of a time. Six months ago, they agreed to a lien release if we got them 40% or a full release if we got them 60%. At the time we had perfect credit and some money in the bank and an offer on the table. That buyer walked.
After the buyers walked we requested that the bank approve a slightly lower short sale since, in the high end market, an unapproved short sale sells way low. They would not.
Now six months down the road we have been late the last 3 months (30 days) and have no money in the bank (husband unemployed). We finally got another offer that nets them $38K. Furthermore, their BPO is now $200K less AND less than our first so they would net nothing in a foreclosure sale.
We just got the answer back and they said their offer remains the same as six months ago i.e. $215K for settled in full or $150K for a lien release.
Since our loan balance is $350K, I’m assuming they think we will make up the difference of $175K or that the buyer might be willing to pay as much as $350K more than their BPO.
Are they crazy? They are allowing us no alternative but to let the house go into foreclosure. We asked them to come back with something more reasonable as that settlement was based on a different market and a different financial picture and they said they would not. I asked to speak with Etrade directly and PNC said I could not.
We are beyond frustrated in large part because we could have had the house sold for only a minor loss a year ago but that would have required a short sale negotiation and those buyers were not interested in the short sale process. So our offers are low because of the short sale process yet the bank wants us to make up the huge shortfall that they caused.